Saturday 22 November 2008

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The world's first legally-binding bill to cut carbon emissions includes a plan to guarantee homes and businesses that use their wind turbines and solar panels to feed the national grid a set fee for doing so.

But while environmentalists have welcomed the move, the Association of Electricity Producers (AEP) claims that it will undermine existing schemes to force energy firms to invest in renewable energy.

AEP chief executive David Porter told Reuters that, while the idea was commendable, it could mean that energy companies pause their developments to see if they could receive more money by scaling back production and claiming through the new scheme.

The agreement that forces energy firms to produce electricity from renewable sources is called the renewables obligation (RO).

"We are strongly in favour of the renewables obligation and the RO, or a mechanism like it, only works if the government maintains it consistently," said Mr Porter.

"Every time you meddle with it you damage the confidence that people have in the RO and it has to be rebuilt."

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